James Nygren, legislative affairs officer
| Sep 12, 2014
FCSAmerica is monitoring an interim rule on crop insurance, a provision of which would reduce premium subsidies on native sod tilled and planted for the 2014 growing season.
FCSAmerica has submitted a comment to the U.S. Department of Agriculture’s Risk Management Agency (RMA), noting that the interim rule is inconsistent with the Farm Bill’s language, which called for reduced subsidies on native sod acreage “tilled for production of an annual crop after the date of enactment of the Agriculture Act of 2014,” or February 7, 2014.
In our comment, we noted that the interim rule wasn’t issued until July 1, 2014. As a result, producers who made investments to prepare ground for planting in 2014 had no way of knowing their decisions would result in a reduction of premium subsidies and production guarantees.
The provision applies to acreage in all counties in Iowa, Minnesota, Montana, Nebraska, North Dakota, and South Dakota that is greater than five acres per policy and is producing annual crops.
The comment period for the interim rule closed on September 2, 2014. RMA will consider all comments before the rule is made final.